A04131 Summary:
| BILL NO | A04131 |
| SAME AS | SAME AS S07206 |
| SPONSOR | Reilly |
| COSPNSR | Novakhov, DeStefano |
| MLTSPNSR | Palmesano |
| Amd §695-b, Ed L | |
| Conforms the New York state college choice tuition savings program to the federal qualified tuition program so as to include savings for grades kindergarten through 12. | |
A04131 Memo:
Go to topNEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
TITLE OF BILL: An act to amend the education law, in relation to conforming the New York state college choice tuition savings program to federal law relat- ing to qualified tuition programs PURPOSE OR GENERAL IDEA OF BILL: Conforms the New York state college choice tuition savings program to the federal qualified tuition program. SUMMARY OF PROVISIONS: Section 695-b of the education law is amended to state that "Eligible educational institution" shall mean an eligible institution as defined in section 529(e)(5) of the Internal Revenue Code of 1986. JUSTIFICATION: This bill will conform the state 529 program to the newly enacted feder- al tax law that allows people to use their 529 savings plan towards eligible educational institutions. 529 plans are savings accounts that are sponsored by state governments which help parents save for. future K-12 and college expenses. This bill will keep the state savings plan in line with federal tax law, giving families the ability to better save for future educational expenses. Unlike Coverdell education savings programs, 529 plans have no age limit and have higher maximum contrib- ution limits. Investing in these plans eads to a number of special tax benefits. PRIOR LEGISLATIVE HISTORY: 2023: S.6000 - Referred to Higher Education FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS: None EFFECTIVE DATE: Immediately